GCBC 10-K & 10-Q changes, risk factors and insider trading

This annual report contains forward-looking statements.statements within the meaning of the Private Securities Litigation reform Act of 1995, which describes the future plans, strategies and expectations of the Company. Greene County Bancorp, Inc. desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protections of the safe harbor with respect to all such forward-looking statements. These forward-looking statements, which are included in this annual report, describe future plans or strategies and include Greene County Bancorp, Inc.’s expectations of future financial results.results Theand can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “will,should,” “intend,indicate,” “expect,would,” “anticipate,contemplate,” “project,continue,” “target” and words of similar expressionsmeaning. identifyForward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of the report. Greene County Bancorp, Inc.’s ability to predict results or the effect of future plans or strategies or qualitative or quantitative changes based on market risk exposure is inherently uncertain. Factors that could affect actual results include but are not limited to:

(a) changes in general market interest rates,rates and inflation, (b) changes in general economic conditions, (c) creditchanges risk,in asset quality, or fluctuations in real estate values, (d) continuedcredit period of high inflation could adversely impact customers,risk, (e) cybersecurity risks, failures or breaches of our IT security systems, (f) bank failures, (g) changes in general business and economic trends, (h) legislative and regulatory changes, (i) monetary and fiscal policies of the U.S. Treasury and the Federal Reserve, (j) changes in the quality or composition of Greene County Bancorp, Inc.’s loan and investment portfolios, (k) deposit flows, (l) competition, and (m) demand for financial services in Greene County Bancorp, Inc.’s market area.area, (n) the effects of any federal government shutdown, (o) changes in our ability to access cost-effective funding, (p) changes in laws or regulations, (q) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, (r) changes in technology, (s) our ability to introduce new products and services and capitalize on growth opportunities, (t) changes in accounting policies and practices, (u) our ability to retain key employees and, (v) the effects of natural disasters and geopolitical events, including terrorism, conflict and acts of war.

(1) Ratio of net income to average total assets.

(2) Ratio of net income to average shareholders’ equity.

(3) The difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4) Net interest income as a percentage of average interest-earning assets.

(5) Noninterest expense divided by the sum of net interest income and noninterest income.

(6) Dividends per share divided by basic earnings per share. This calculation does not take into account the waiver of dividends by Greene County Bancorp, MHC.

(7) Dividends declared divided by net income.

(8) Shareholders’ equity divided by outstanding shares.

Greene County Bancorp, Inc. (the “Company”) is the holding company for the Bank of Greene County (the “Bank”), a community-based bank offering a variety of financial services to meet the needs of the communities it serves. Greene County Bancorp, Inc.’s stock is traded on the NASDAQ Capital Market under the symbol “GCBC.” Greene County Bancorp, MHC is a mutual holding company that owns 54.1% of the Company’s outstanding common stock. The Bank of Greene County is a federally chartered savings bank. The Bank of Greene County’s principal business is attracting deposits from customers within its market area and investing those funds primarily in loans, with excess funds used to invest in securities. At June 30, 2025,2026, the Bank of Greene County operated 1819 full-service branches,banking an administration office,offices, lending centers, an operations center, customer call center, administration center, and a wealth management center in New York’s Hudson Valley and Capital District Regions of New York State. In June 2004, Greene County Commercial Bank (“Commercial Bank”) was opened for the limited purpose of providing financial services to local municipalities. The Commercial Bank is a subsidiary of the Bank of Greene County,County and is a New York State-chartered commercial bank. In June 2011, Greene Property Holdings, Ltd. was formed as a New York corporation that has elected under the Internal Revenue Code to be a real estate investment trust. Greene Properties Holding, Ltd. is a subsidiary of the Bank of Greene County. Certain mortgages and notes held by the Bank of Greene County were transferred to and are beneficially owned by Greene Property Holdings, Ltd. The Bank of Greene County continues to service these loans.

Market risk is the risk of loss from adverse changes in market prices and/or interest rates. Since netNet interest income (the difference between interest earned on loans and investments and interest paid on deposits and borrowings) is the Company’s primary source of revenue. Net interest income is affected by changes in interest rates as well as fluctuations in the level and duration of the Company’s assets and liabilities.

Credit risk is the risk to the Company’s earnings and shareholders’ equity that results from customers,customers to whom loans have been made and to the issuers of debt securities in which the Company has invested, failing to repay their obligations. The magnitude of risk depends on the capacity and willingness of borrowers andborrowers, debt issuers to repay and the sufficiency of the value of collateral obtained to secure the loans made or investments purchased.

The accounting and reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. In the course of normal business activity, management must select and apply many accounting policiespolicies, and methodologiesmethodologies, and make estimates and assumptions that lead to the financial results presented in the Company’s consolidated financial statements and accompanying notes. There are uncertainties inherent in making these estimates and assumptions, which could materially affect the Company’s financial condition or results of operations.

Critical accounting estimatesestimates, as those estimates made in accordance with GAAP thatGAAP, involve a significant level of estimation uncertainty and have hadhad, or are reasonably likely to havehave, a material impact on the financial condition or results of operations. The more significant of these policies are summarized in Note 11, Summary of significant accounting policies to the consolidated financial statements of this Annual Report Form 10-K. Not all significant accounting policies require management to make difficult, subjective or complex judgments. The allowance for credit losses on loans and unfunded commitments policies noted below are deemed the Company’s critical accounting estimate.

Management of the Company considers the accounting policy relating to the allowance for credit losses on loans to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolios, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses on loans indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Going forward, theThe impact of utilizing the CECL approachmodels to calculate the allowance for credit losses will beare significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Changes in the national unemployment rate and national GDPgross domestic product could have a material impact on the model’s estimation of the allowance. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings. This critical accounting policy and its application are periodically reviewed with the Audit Committee and the Board of Directors.

Management’sThe methodologyCompany’s inpolicies determiningon the CECL method for allowance for credit losses onare loans and unfunded commitments can be founddisclosed in Note 11, toSummary of significant accounting policies with the audited consolidated financial statements ofand notes presented in this Annual Report Form 10-K. The activity in the allowance for credit losses on loans and unfunded commitments is depicted in supporting tables in Note 44, Loans and Allowance for Credit Losses on Loans to the consolidated financial statements of this Annual Report Form 10-K.

Net income for the year ended June 30, 20252026, amounted to $31.1$41.0 million, or $1.83$2.41 per basic and diluted share, as compared to $24.8$31.1 million, or $1.45$1.83 per basic and diluted share, for the year ended June 30, 2024,2025, an increase of $6.3$9.9 million, or 25.7%.31.7%. The increase in net income was primarily due to an increase of $14.0$13.4 million in interest income partiallyand offseta by an increasedecrease of $4.9$4.4 million in interest expense. The provision for credit losses amounted to a charge of $1.3$2.0 million and $766,000$1.3 million for the years ended June 30, 20252026 and 2024,2025, respectively. Net interest income increased $9.1$17.8 million when comparing the years ended June 30, 20252026 and 2024.2025. The increase in net interest income resulted from an increase in interest rates earned on interest-earnings assetsassets, outpacinga the increasedecrease in interest rates paid on interest-bearing liabilities, and by interest-earnings assets growing faster than interest-bearing liabilities when comparing the years ended June 30, 20252026 and 2024.2025. Growth in interest-earning assets was due to loans and securities. Growth in loans was primarily in commercial real estate.

Net interest rate spread and margin both increased when comparing the years ended June 30, 20252026 and 2024.2025. Net interest rate spread increased 2246 basis points to 2.43% for the year ended June 30, 2026, as compared to 1.97% for the year ended June 30, 2025,2025. comparedNet interest margin increased 46 basis points to 1.75%2.65% for the year ended June 30, 2024.2026, Netas interest margin increased 21 basis pointscompared to 2.19% for the year ended June 30, 2025, compared to 1.98% for the year ended June 30, 2024.2025. The increase during the year ended June 30, 20252026 was duedriven toby increases inhigher interest income on loans and securities, as theyearning continueassets torepriced repriceand atnew higheroriginations reflected yields andabove theprior-period interestlevels, ratescombined earnedwith ondisciplined newdeposit balancespricing werethat higherreduced thanfunding the historic low levels from the prior periods.costs.

Total cash and cash equivalents decreased $7.3$38.2 million to $144.9 million at June 30, 2026 from $183.1 million at June 30, 2025 from $190.4 million at June 30, 2024.2025. The level of cash and cash equivalents is a function of the daily account clearing needs and deposit levels as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on a daily basis. As of June 30, 2026 and 2025, the Company believes it has maintained a strong liquidity position.

Securities available-for-sale and held-to-maturity increased $91.9$45.1 million, or 8.8%,4.0%, to $1.2 billion at June 30, 2026 as compared to $1.1 billion at June 30, 2025 as compared to $1.0 billion at June 30, 2024.2025. Securities purchasespurchased totaled $444.2$694.2 million during the year ended June 30, 2025,2026, primarily consisting of $308.5$340.5 million of state and political subdivision securities, $88.4$254.2 million of U.S. Treasuries, $78.0 million of mortgage-backed securities, $24.7 million of U.S. Treasury securities, $16.7$12.5 million of collateralized mortgage obligations, and $5.9$9.0 million of corporate debt securities. Principal pay-downs and maturities during the year ended June 30, 20252026, amounted to $353.5$644.8 million, primarily consisting of $258.7$320.1 million of state and political subdivision securities, $58.0$261.0 million of U.S. TreasuryTreasuries, securities, $32.7$44.5 million of mortgage-backed securities, $2.8$15.3 million of corporate debt securities, and $3.9 million of collateralized mortgage obligations and $1.3 million of corporate debt securities. Sales during the year ended June 30, 2025 amounted to $6.7 million of U.S. Treasury securities.obligations.

U.S. Treasury and mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly and/or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of zero credit losses. Therefore, the Company determined a zero credit loss assumption,assumption and did not calculate or record an allowance for credit loss for these securities. An allowance for credit losses on investment securities held-to-maturity has been recorded for certain municipal securities issued by state and political subdivisions and corporate debt securitiessecurities, to account for expected lifetime credit loss using the CECL methodology.

The Company holds 59.2%58.7% of its securities portfolio at June 30, 20252026 in state and political subdivision securities to take advantage of tax savings and to promote the Company’s participation in the communities in which it operates. Mortgage-backed securitiessecurities, andwhich asset-backedrepresent 35.7% of our securities heldportfolio withinat theJune portfolio30, 2026, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Net loans receivable increased $127.0$124.2 million, or 8.6%,7.7%, to $1.7 billion at June 30, 2026 as compared to $1.6 billion at June 30, 20252025. from $1.5 billion at June 30, 2024. The loanLoan growth experienced during the year ended June 30, 20252026, consisted primarily of $117.9$92.3 million in commercial real estate loans, $5.5$24.7 million in commercial loans, and $4.9$11.3 million in home equity loans. The Company continues to experience loan growth as a result of continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use a conservative underwriting policy in regard to allits loan originations,originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals aremay be obtained on loans when there is a reason to believe that there has been a change in the borrower’s ability to repay the loan principal and interest, generally, when a loan is in a delinquent status.status, or an event that would indicate a significant decline in the collateral value. Additionally, if an existing loan is to be modified or refinanced, generally, an appraisal is ordered to ensure continued collateral adequacy.

Loan balances include net deferred (fees)/costcosts of ($567,000$397,000) and ($42,000$567,000) at June 30, 20252026 and 2024,2025, respectively.

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 84.4%85.5% in non-owner occupied loans and 15.6%14.5% in owner occupied loans. These loans are generally secured by commercial, residential investment or industrial property types. The Company’s commercial real estate loan portfolio generally consists of standalone loans supported by both sufficient cash flows and collateral. On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average LTV of approximately 57.2%,57.5%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.4%, as of June 30, 2025.2026. The Company’s commercial real estate loans are primarily made within our market area in Greene, Columbia, Albany, UlsterUlster, Rensselaer and RensselaerSaratoga Counties of New York State. The Company actively monitors economic and credit trends for borrower industries and manages our commercial real estate portfolio concentrations to mitigate its credit risk exposure.

As of June 30, 2025,2026, non-owner occupied construction loans were $72.0$90.5 million or 6.8%7.9% of total commercial real estate loans. Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third-party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $5.5 million or 1.0% of the Company’s construction exposure. Construction loans are primarily comprised of approximately 33.5%39.1% multi-family buildings, 28.5% mixed use real estate, 27.3%16.1% multi-family buildings, 18.1% pre-constructioncondominiums and land10.4% loans,self-storage. andAs 12.1%of residentialJune 30, 2026, there were no high volatility commercial real estate.estate loans.

Management continually identifies, analyzes andclosely monitors the quality of the loan portfolio and has established a loan review process designed to help gradingmonitor any change in borrower risk during the life cycle of their loan. The Company utilizes a credit riskquality inherentgrading insystem thethat commercialis used at loan portfolio.inception and updated as appropriate based on an annual review process. The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk.risk and identify any portfolio trends that could impact profitability. Consistent with regulatory guidelines, the Company provides for the classification of loansloans, andsuch otheras assets“Pass,” considered“Special being of lesser quality. Such ratings coincide with theMention,” “Substandard”, “Doubtful” and “Loss” classifications used by federal regulators in their examination of financial institutions. Assets that do not currently expose the insured financial institutions to sufficient risk to warrant classification in one of the aforementioned categories but otherwise possess weaknesses are designated “Special Mention.”classifications. The components of the Company’s underwriting and monitoring functions are critical to the timely identification, classification and resolution of problem credits. For further discussion regarding how management determines when a loan should be classified, see Part II, Item 8 Financial Statements and Supplemental Data, Note 4, Loans and Allowance for Credit Losses on Loans of this Annual Report.

Non-performing assets consist of non-accrual loans, loans over 90 days past duedue, and still accruing, other real estate owned that has been acquired in partial or full satisfaction of the loan obligation or upon foreclosure, and non-performing securities.

Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000. Foreclosed real estate represents property acquired through foreclosure proceedings and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty. As of June 30, 2025,2026, twofour loans have been modified in the last 12 months with a total amortized basis of $2.8$4.2 million. As of June 30, 2024,2025, there were threetwo loans modified in the last 12 months with a total amortized basis of $4.1$2.8 million.

At June 30, 20252026 and June 30, 2024,2025, there were no loans delinquent greater than 90 days and accruing.

The Company analysesanalyzes loans on an individual basis when management determines that the individual loan no longer exhibits risk characteristics consistent with its designated pool of loans, under the Company’s CECL methodology. Loans individually evaluated had an amortized cost basis of $751,000$1.6 million and $1.4 million,$751,000, with an allowance for credit losses on loans of $549,000$466,000 and $662,000,$549,000, at June 30, 20252026 and 2024,2025, respectively. At June 30, 2026, the amortized cost basis of the collateral dependent loans was $1.4 million for residential real estate loans and $170,000 for home equity loans. At June 30, 2025, the amortized cost basis of collateral dependent loans was $751,000 for residential real estate loans. The allowance for credit loss for collateral dependent loans is individually assessed based on the fair value of the collateral less costs to sell at the reporting date.

Non-performing assets amounted to $3.1$3.9 million and $3.7$3.1 million at June 30, 20252026 and 2024,2025, respectively. Loans on non-accrual status totaled $3.9 million at June 30, 2026, of which there were four residential real estate loans totaling $745,000 in the process of foreclosure. Included in non-accrual loans were $1.7 million of loans which were less than 90 days past due at June 30, 2026, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.1 million at June 30, 2025, of which there were one commercial real estate loan totaling $142,000,$142,000 and three residential real estate loans totaling $841,000 in the process of foreclosure. Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.7 million at June 30, 2024, of which there were four residential real estate loans totaling $686,000 and three commercial real estate loan totaling $1.6 million in the process of foreclosure. Included in non-accrual loans were $1.5 million of loans which were less than 90 days past due at June 30, 2024, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments.

In addition to non-performing assets discussed above, the Company has identified potential commercial and commercial real estate problem loans classified as substandard or special mention, totaling $45.4$40.0 million at June 30, 20252026 as compared to $48.6$39.4 million at June 30, 2024,2025, aan decreaseincrease of $3.2$524,000. million.During the year ended June 30, 2026, the Company upgraded 3 commercial real estate relationships and 2 commercial relationships to pass and 5 commercial real estate relationships and 4 commercial relationships were paid-off. This was offset by 7 commercial real estate relationships and 4 commercial relationships that were downgraded to classified from pass, due to the deterioration in the borrower cash flows and financial performance during the year end June 30, 2026. During the year ended June 30, 2025, the Company upgraded 10 commercial real estate relationships and 15 commercial relationships to pass, and 10 commercial real estate relationships and 5 commercial relationships were paid-off. This was offset by 14 commercial real estate relationships and 11 commercial relationships that were downgraded to classified from pass, due to the deterioration in the borrower cash flows and financial performance during the year end June 30, 2025. DuringOf the yearloans endedclassified as substandard or special mention, $38.8 million were performing at June 30, 2024, the Company downgraded to classified from pass 17 commercial real estate relationships and 9 commercial loan relationships, due to the deterioration in the borrower cash flows and financial performance. This was offset by 4 commercial real estate relationships and 1 commercial relationship that were upgraded to pass, and 7 commercial real estate relationships and 2 commercial relationships that were paid-off during the year ended June 30, 2024.2026. Management continues to monitor classified loan relationships closely. The Company had no loans classified doubtful or loss at June 30, 20252026 or June 30, 2024.2025.

The ACL on loans totaled $21.9 million at June 30, 2026, as compared to $20.1 million at June 30, 2025, comparedan toincrease $19.2of million$1.7 atmillion, Juneor 30, 2024.8.5%. The ACL on loans to total loans receivable was 1.25% at June 30, 2026, as compared to 1.24% at June 30, 2025, compared to 1.28% at June 30, 2024.2025. The increase in the ACL on loans as of June 30, 20252026, increased as compared to June 30, 2024,was primarily attributable to growth in gross loans, an increase in theloan reserve for individually evaluated loans, and a modest deterioration in the economic forecasts used in the CECL models on loans as of June 30, 2025. This was partially offset by an improvement in the qualitative factor assessments on loans as of June 30, 2025.volume.

Net charge-offs totaled $349,000 $338,000 and $1.4 million$349,000 for the years ended June 30, 20252026 and 2024,2025, respectively.respectively, a decrease of $11,000. There were no material charge-offs in any loan segment during the yearyears ended June 30, 20252026 and one commercial loan charged-off for the year ended June 30, 2024, which was fully reserved for as an individually evaluated loan through the allowance for credit losses.2025.

The allowance for credit losses on unfunded commitments represents the amount held against credit exposures that are not represented on the consolidate balancestatements sheets.of financial conditions. The allowance is recognized as a liability, a component of accrued expenses and other liabilities, with adjustments as an expense in other noninterest expense. The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the estimated contractual life. The Company considers the following segments of unfunded commitments exposure;: home equity line of credits, commercial line of credits, consumer loans, the residential and commercial real estate loans committed but not closed and the unfunded portion of the construction loans. The probable funding amount by segment is multiplied by the respective reserve percentage calculated in the allowance for credit losses on loans to calculate a reserve on unfunded commitments.

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities. The Company has interest rate derivatives that result from a service provided to certain qualifying customerscustomers, and,and therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and are presented within other assets and other liabilities on the consolidated statements of financial condition. Changes in the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statementstatements of income.

Under terms of the agreements with the third-party counterparties, the Company provides cash collateral to the counterparty, when required, for the initial trade. Subsequent to the trade, the margin is exchanged in either direction,direction based upon the estimated fair value of the underlying contracts. Cash collateral represents the amount that is exchanged under master netting agreements that allows the Company to offset the derivative position with the related collateral. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

RPAs in which the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. The RPAs participations-out are spread out over three financial institution counterparties and terms range between three to tennine years. The Company’s credit exposure transferred out was $506,000$39,000 and $105,000$506,000 as of June 30, 20252026 and 2024,2025, respectively. The Company transferred out RPAs with a notional amount of $18.9$22.3 million and $8.0$18.9 million as of June 30, 20252026 and 2024,2025, respectively.

RPAs in which the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The RPAs participations-ins are spread out over five financial institution counterparties and terms range between twoone to twelveeleven years. The credit exposure associated with risk participations-ins was $231,000 and $1.0 million and $276,000 as of June 30, 20252026 and 2024,2025, respectively. The Company held RPAs with a notional amount of $130.9$152.4 million and $112.3$130.9 million as of June 30, 20252026 and 2024,2025, respectively.

Premises and equipment amounted to $15.2$14.8 million and $15.6$15.2 million at June 30, 20252026 and 2024,2025, respectively. Purchases totaled $741,000 during the year ended June 30, 2026, consisting primarily of IT infrastructure, computer equipment, surveillance systems and furniture to support the opening of a new branch. Purchases totaled $691,000 during the year ended June 30, 2025, consisting primarily of data equipment for a new disaster recovery site and new surveillance systems for the Company’s branch network. PurchasesDepreciation totaled $1.5 million duringfor the yearyears ended June 30, 2024, consisting primarily of building improvements2026 and equipment for a new lending center located in Albany, New York and a new office building located in Catskill, New York, and IT equipment. Depreciation for the year ended June 30, 2025 totaled $1.1 million, compared to $928,000 for the year ended June 30, 2024.million. There were no disposals of premises and equipment during the fiscal years ended June 30, 20252026 and 2024.2025.

Real estate acquired as a result of foreclosure, or in-substance foreclosure, deed in lieu of foreclosure or in full or partial satisfaction of loans, is classified as foreclosed real estate (“FRE”) until such time as it is sold. When real estate is classified as FRE, it is recorded at the estimated fair value of the propertyproperty, less estimated costs to dispose of at the time of acquisition to establish a new carrying value. Write downs from the carrying value of the loan to estimated fair value, which are required at the time of foreclosure, are charged to the allowance for credit losses. Subsequent adjustments to the carrying value of such properties resulting from declines in fair valuevalue, result in the establishment of a valuation allowance and are charged to operations in the period in which the declines occur. At June 30, 20252026 and 2024,2025, the Company had no foreclosed real estate.

Deposits totaled $2.7 billion at June 30, 2026 as compared to $2.6 billion at June 30, 2025 and $2.4 billion at June 30, 2024,2025, an increase of $250.6$73.6 million, or 10.5%.2.8%. The Company had $51.6$52.4 million and zero$51.6 million of brokered deposits at June 30, 20252026 and June 30, 2024,2025, respectively. NOW deposits increased $192.6$30.2 million, or 10.9%,1.5%, noninterest bearing deposits increased $30.1 million, or 27.3%, and certificates of deposits increased $89.7$20.6 million, or 64.8%,9.0%, when comparing June 30, 20252026 and June2025. 30, 2024. Noninterest bearingSavings deposits decreased $15.3$3.7 million, or 12.2%,1.5%, and money market deposits decreased $10.5$3.6 million, or 9.3%, and savings deposits decreased $5.9 million, or 2.3%,3.5%, when comparing June 30, 20252026 and June 30, 2024.2025.

(1) Reflects $144.9 million, $183.1 million, and $190.4 million of cash and cash equivalents, $255.4 million, $221.1 millionmillion, and $18.2$157.6 million of remaining borrowing capacity from the Federal Home Loan BankBank, and $15.9 million, $18.2 million, and $21.7 million of remaining borrowings capacity from the Federal Reserve Bank, as of June 30, 2026, 2025, and 2024, respectively.

Borrowings for the Company amounted to $155.1 million at June 30, 2026 as compared to $128.1 million at June 30, 20252025, comparedan to $199.1 million at June 30, 2024, a decreaseincrease of $71.0$27.0 million. At June 30, 2025,2026, borrowings included $74.0$119.0 million of overnight borrowings with the FederalFHLB, Home Loan Bank of New York (“FHLB”), $49.9$29.9 million of Fixed-to-Floating Rate Subordinated Notes,Notes and $4.2$6.2 million of long-term borrowings with the FHLB.

On September 17, 2020, the Company entered into Subordinated Note Purchase Agreements with 14 qualified institutional investors, issued at 4.75% Fixed-to-Floating Rate due September 15, 2030, in the aggregate principal amount of $20.0 million, carried net of issuance costs of $424,000 amortized over a period of 60 months. These notes arewere callable on September 15, 2025. At June 30,17, 2025, thereand werehad a floating interest rate of 8.99%. On October 1, 2025, the entire outstanding principal amount of the $20.0 million of4.75% Fixed-to-Floating Rate Subordinated NoteNotes, Purchasesdue AgreementsSeptember outstanding,17, net2030, ofwere issuanceredeemed. costs.The redemption was funded by cash on hand.

The Company’s borrowing agreements and additional borrowing capacity are discussed further within Part II, Item 8 Financial Statements and Supplemental Data, NoteNote, 7 Borrowings of this Annual Report.

Other liabilities, consisting primarily of accrued liabilities, totaled $37.1 million at June 30, 2026, as compared to $33.9 million at June 30, 2025, compared to $31.4 million at June 30, 2024, an increase of $2.5$3.2 million.million, or 9.4%. The change was primarily due to an increase of $2.4$3.0 million in employee benefits, including short-term incentive plans and supplemental executive retirement plans when comparing the years ended June 30, 20252026 toand June 30,2024.2025.

Comparison of Financial Condition at DecemberMarch 31, 20252026 and June 30, 2025

Total assets of the Company were $3.1$3.2 billion at DecemberMarch 31, 20252026 and $3.0 billion at June 30, 2025, an increase of $106.4$140.5 million, or 3.5%.4.6%. Securities available-for-sale and held-to-maturity increased $89.7$52.3 million, or 7.9%,4.6%, to $1.2 billion at DecemberMarch 31, 20252026 as compared to $1.1 billion at June 30, 2025. Net loans receivable increased $58.6$118.7 million, or 3.6%,7.4%, to $1.7 billion at DecemberMarch 31, 20252026 as compared to $1.6 billion at June 30, 2025.

Total cash and cash equivalents for the Company were $124.1$139.5 million at DecemberMarch 31, 20252026 and $183.1 million at June 30, 2025, a decrease of $59.0$43.6 million, or 32.2%.23.8%. The level of cash and cash equivalents is a function of the daily account clearing needs and deposit levelslevels, as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on a daily basis. The Company has continued to maintain strong capital and liquidity positions as of DecemberMarch 31, 20252026 and June 30, 2025.

Securities available-for-sale and held-to-maturity increased $89.7$52.3 million, or 7.9%,4.6%, to $1.2 billion at DecemberMarch 31, 20252026 as compared to $1.1 billion at June 30, 2025. Securities purchases totaled $459.6$569.3 million during the sixnine months ended DecemberMarch 31, 2025, and consisted2026, primarily consisting of $219.3$254.2 million of U.S. Treasuries, $189.5$229.9 million of state and political subdivision securities, $37.9$68.1 million of mortgage-backed securities, $9.0 million of corporate debt securities, and $3.9$8.1 million of collateralized mortgage obligations. Principal pay-downs and maturities during the sixnine months ended DecemberMarch 31, 20252026, amounted to $364.9$512.4 million, primarily consisting of $180.0$259.0 million of U.S. Treasuries, $153.4$205.0 million of state and political subdivision securities, $21.3$31.3 million of mortgage-backed securities, $8.3$14.4 million of corporate debt securities, and $1.9$2.7 million of collateralized mortgage obligations. SalesAt during the quarter ended DecemberMarch 31, 2025,2026, amounted to $5.4 million of Federal Agency securities and $ 2.9 million of U.S. Treasury securities. At December 31, 2025, 57.8%58.7% of our securities portfolio consisted of state and political subdivision securities to take advantage of tax savings and to promote the Company’s participation in the communities in which it operates. Mortgage-backed securities, which represent 32.4%35.4% of our securities portfolio at DecemberMarch 31, 2025,2026, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

The following table summarizes the securities portfolio by classification as a percentage of the portfolio. The values are reported at the balance sheet carrying value, as of DecemberMarch 31, 20252026 and June 30, 2025. Refer to the financial statements Note 3, Securities for the complete fair value of securities.

Securities held-to-maturity are evaluated for credit losses on a quarterly basis under the CECL methodology. The allowance for credit losses on securities held-to-maturity was $616,000$550,000 and $548,000 at DecemberMarch 31, 20252026 and June 30, 2025, respectively.

Net loans receivable increased $58.6$118.7 million, or 3.6%,7.4%, to $1.7 billion at DecemberMarch 31, 20252026 as compared to $1.6 billion at June 30, 2025. Loan growth experienced during the sixnine months ended DecemberMarch 31, 2025,2026, consisted primarily of $43.5$96.8 million in commercial real estate loans, $12.9$18.2 million in commercial loans, and $6.5$7.7 million in home equity loans. The allowance for credit losses on loans increased $1.2$1.6 million, or 5.9%,8.1%, to $21.3$21.8 million at DecemberMarch 31, 20252026 as compared to $20.1 million at June 30, 2025. The increase in the allowance for credit losses was primarily attributable to an increase in loan volume. The Company continues to experience loan growth as a result of the continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use a conservative underwriting policy in its loan originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals are obtained on loans when there is a reason to believe that there has been a change in the borrower’s ability to repay the loan principal and interest, generally,generally when a loan is in a delinquent status. Additionally, if an existing loan is to be modified or refinanced, generally,generally an appraisal is ordered to ensure continued collateral adequacy.

Loan balances include net deferred fees/(costs) of ($483,000$490,000) and ($567,000) at DecemberMarch 31, 20252026 and at June 30, 2025, respectively.

Loan balances exclude accrued interest receivable of $7.7$8.0 million and $7.0 million at DecemberMarch 31, 20252026 and at June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Commercial and commercial real estate loans classified as substandard and special mention totaled $36.8$34.9 million at December March 31, 2025,2026, and $39.4 million at June 30, 2025, a decrease of $2.6$4.5 million. The decrease in the loans classified during the period ended DecemberMarch 31, 2025,2026, was primarily due to upgrades of commercial real estate loans that were considered to be performing and paying in accordance with the terms of their loan agreements and commercial real estate loans that were paid off during the period. Of the loans classified as substandard or special mention, $36.1 $31.5 million were performing at DecemberMarch 31, 2025.2026. There were no loans classified as doubtful or loss at DecemberMarch 31, 20252026 or June 30, 2025.

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 85.0%85.4% in non-owner occupied loans and 15.0%14.6% in owner occupied loans. These loans are generally secured by commercial, residential investment or industrial property types. The Company’s commercial real estate loan portfolio generally consists of standalone loans supported by both sufficient cash flows and collateral. On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average loan-to-value (“LTV”) of approximately 57.7%,57.8%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 50.1%,49.5%, as of DecemberMarch 31, 2025.2026. The Company’s commercial real estate loans are primarily made within our market area in Greene, Columbia, Albany, Ulster, Rensselaer, and Saratoga Counties of New York State. The Company actively monitors the economic and credit trends for borrower industries and manages our commercial real estate portfolio concentrations to mitigate its credit risk exposure.

As of DecemberMarch 31, 2025,2026, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans at $288.3$297.5 million, or 26.3%25.8% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area and have historically performed well with strong credit metrics. As of DecemberMarch 31, 2025,2026, the weighted average LTV was approximately 57.3%58.0% for the non-owner occupied multi-family loan segment.

As of DecemberMarch 31, 2025,2026, non-owner occupied construction loans were $77.6$86.6 million, or 7.1%7.5% of total commercial real estate loans. Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $7.2$7.8 million of the Company’s construction exposure. Construction loans are primarily comprised of approximately 41.2%43.5% multi-family buildings, 23.6%24.7% mixed use real estate, 12.4%10.9% self-storage and 12.0%9.5% condominiums.

The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $86.7$86.0 million, or 7.9%7.5% of total commercial real estate loans as of DecemberMarch 31, 2025.2026. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of DecemberMarch 31, 2025,2026, the weighted average LTV was approximately 59.0%58.5% for the non-owner occupied office loan segment.

The ACL on loans totaled $21.3$21.8 million at DecemberMarch 31, 2025,2026, compared to $20.1 million at June 30, 2025. The ACL on loans to total loans receivable was 1.26%1.25% at DecemberMarch 31, 20252026 compared to 1.24% at June 30, 2025. The increase in the ACL on loans from DecemberMarch 31, 20252026 to June 30, 2025, was primarily attributable to an increase in loan volume andoffset growthby improvements in securitiesthe held-to-maturityeconomic thatforecasts requireused anin allowance.the Current Expected Credit Loss model.

Net charge-offs on loans amounted to $140,000$73,000 and $95,000 $96,000 for the three months ended DecemberMarch 31, 20252026 and 2024,2025, respectively, an increasea decrease of $45,000.$23,000. Net charge-offs totaled $200,000$273,000 and $209,000$305,000 for the six nine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. There were no material charge-offs in any loan segment during the three and sixnine months ended December March 31, 2025.2026 and 2025, respectively.

At DecemberMarch 31, 2025,2026, the allowance for credit losses on unfunded commitments totaled $1.5$1.3 million as compared to $1.8 million at June 30, 2025, a decrease of $319,000,$519,000, or 18.0%.29.3%. The decrease in the provision for the sixnine months ended DecemberMarch 31, 2025,2026, was primarily due to a decrease in the Company’s contractual obligation to extend credit.

Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000. Foreclosed real estate represents property acquired through foreclosure and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty. As of DecemberMarch 31, 2025,2026, three loans have been modified in the last 12 months with a total amortized basis of $2.8 million. As of DecemberMarch 31, 2024,2025, there were fourfive loans modified with a total amortized basis of $6.7$6.9 million.

At DecemberMarch 31, 20252026 and June 30, 2025, there were no loans delinquent greater than 90 days and accruing.

Non-performing assets amounted to $3.3 million and $3.1 million at DecemberMarch 31, 20252026 and June 30, 2025, respectively. Loans on non-accrual status totaled $3.3$3.1 million at DecemberMarch 31, 2025,2026, of which there were four residential real estate loans totaling $668,000 and one commercial real estate loans totaling $142,000$644,000 in the process of foreclosure. Included in non-accrual loans were $2.0$1.7 million of loans which were less than 90 days past due at DecemberMarch 31, 2025,2026, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.1 million at June 30, 2025, of which there were one commercial real estate loan totaling $142,000 and three residential real estate loans totaling $841,000 in the process of foreclosure. Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, but have a recent history of delinquency greater than 90 days past due.

Deposits totaled $2.8 billion at March 31, 2026 as compared to $2.6 billion at December 31, 2025 and June 30, 2025, respectively.an increase of $132.7 million. The Company had $31.6 million and $51.6 million of brokered deposits at DecemberMarch 31, 20252026 and June 30, 2025, respectively. NOW deposits increased $48.1$141.3 million, or 2.5%,7.2%, and money market deposits increased $2.3 million, or 2.3% when comparing DecemberMarch 31, 20252026 and June 30, 2025. CertificatesSavings deposits decreased $7.5 million, or 3.0%, certificates of deposits decreased $22.2$2.3 million, or 9.7%,1.0%, money market deposits decreased $16.1 million, or 15.7%,and noninterest bearing deposits decreased $5.0$1.1 million, or 4.5%, and savings deposits decreased $3.6 million, or 1.4%,1.0%, when comparing DecemberMarch 31, 20252026 and June 30, 2025.

Reflects $124.1$139.5 million and $183.1 million of cash and cash equivalents, $194.9$216.3 million and $221.1 million of remaining borrowing capacity from the Federal Home Loan Bank, and $18.4$15.9 million and $18.2 million of remaining borrowing capacity from the Federal Reserve Bank, as of DecemberMarch 31, 20252026 and June 30, 2025, respectively.

Uninsured deposits after exclusions represent 12.1% and 12.5% of total deposits asfor ofboth DecemberMarch 31, 20252026 and June 30, 2025, respectively. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit. The Company continually monitors the level and composition of uninsured deposits.

At DecemberMarch 31, 2025,2026, the Bank had pledged approximately $681.5 $693.8 million of its residential and commercial mortgage portfolio as collateral for borrowing and irrevocable municipal letters of credit at the Federal Home Loan Bank of New York (“FHLB”). The maximum amount of funding available from the FHLB was $429.0$448.7 million at DecemberMarch 31, 2025,2026, of which there were $180.0$73.2 million of overnight borrowings, $4.2 million long-term fixed rate borrowings and $50.0$155.0 million irrevocable municipal letters of credit outstanding at DecemberMarch 31, 2025.2026. At June 30, 2025, the Bank had $74.0 million in overnight borrowings, $4.2 million of long-term fixed rate borrowings and $90.0 million in irrevocable municipal letters of credit at the FHLB. Interest rates on overnight borrowings are determined at the time of borrowing. The irrevocable municipal letters of credit with the FHLB have been issued to secure municipal transactional deposit accounts, on behalf of Greene County Commercial Bank.

The FHLB term borrowings include long-term fixed rate borrowings from the “FHLB 0.0% Development Advance (ZDA) Program.” The Company receives a corresponding credit related to the FHLB term fixed rate borrowings, which effectively reduces the interest rate paid to zero percent. At DecemberMarch 31, 20252026 and June 30, 2025, the Bank had a FHLB long-term fixed rate borrowing of $2.2 million at a stated rate of 3.8%, maturing October 2027, and a FHLB long-term fixed rate borrowing of $2.0 million at a stated rate of 4.2%, maturing June 2028.

The Bank pledges securities and certificates of depositdeposits as collateral at the Federal Reserve Bank discount window for overnight borrowings. At DecemberMarch 31, 20252026 and June 30, 2025, approximately $18.4$15.9 million and $18.2 million, respectively, of collateral was available to be pledged against potential borrowings at the Federal Reserve Bank discount window. There were zero overnight borrowings outstanding with the Federal Reserve Bank at DecemberMarch 31, 20252026 and June 30, 2025.

The Bank has established unsecured lines of credit with Atlantic Community Bankers Bank for $15.0 million and three other financial institutions for $90.0 million. The lines of credit provide for overnight borrowing and the interest rate is determined at the time of the borrowing. There were zero borrowings outstanding with these lines of credit for the Bank at DecemberMarch 31, 20252026 and June 30, 2025.

On September 15, 2021, the Company entered into SNPAs with 18 qualified institutional investors, issued at 3.00% Fixed-to-Floating Rate due September 15, 2031, in the aggregate principal amount of $30.0 million, carried net of issuance costs of $499,000 amortized over a period of 60 months. These notes are callable on September 15, 2026. At DecemberMarch 31, 2025,2026, there were $29.9 million of these SNPAs outstanding, net of issuance costs.

At DecemberMarch 31, 2025,2026, there were no other long-term borrowings and therefore, no scheduled maturities of long-term borrowings.

Shareholders’ equity increased to $258.3$267.6 million at DecemberMarch 31, 20252026 as compared to $238.8 million at June 30, 2025, resulting primarily from net income of $19.2$29.7 million and a decrease in accumulated other comprehensive loss of $1.8$2.3 million, partially offset by dividends declared and paid of $1.6$3.3 million.

The Federal Reserve has reduced the federal funds interest raterates by 100 basis points in the third and fourth quarters of 2024, and 75 basis points in the third and fourth quarters of 2025, fromwhile holding rates unchanged in the recentfirst highquarter of 5.25 percent.2026. With the recent Federal Reserve rate cuts, the long-term interest rates beganbegin to decrease. This resulted in the fair values of the fixed income bond portfolio to increase and therefore decreaseddecrease the unrealized loss position as of DecemberMarch 31, 2025.2026. Additionally, the Company continued to purchase investment securities in the higher interest rate environment, decreasing the unrealized loss position.

OnAs Septemberpreviously 17,announced 2019,on April 15, 2026, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 400,000 shares of its common stock. Repurchases are madestock, at management’s discretiondiscretion, at prices management considers to be attractiveattractive, and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. For the three and sixnine months ended DecemberMarch 31, 2025,2026, the Company did not repurchase any shares.

(3) Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months ended March 31, 2024, June 30, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025. Dividends declared during the three months ended September 30, 2024, and December 31, 2024, and March 31, 2026 were paid to the MHC. The MHC’s ability to waive the receipt of dividends is dependent upon annual approval of its members as well as receiving the non-objection of the Federal Reserve Board.

Comparison of Operating Results for the Three and SixNine Months Ended DecemberMarch 31, 20252026 and 20242025

The following table sets forth certain information relating to the Company for the three and sixnine months ended DecemberMarch 31, 20252026 and 2024.2025. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, are expressed in both dollars and rates. No tax equivalent adjustments made. Average balances were based on daily averages. Average loan balances include non-performing loans. The loan yields include net amortization of certain deferred fees and costs that are considered adjustments to yields.

Interest income calculated on a taxable-equivalent basis (non-GAAP) includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. The rate used for this adjustment was 21% for federal income taxes and 4.44% for New York State income taxes for the periods ended DecemberMarch 31, 20252026 and 2024,2025, respectively.

(1) Calculated net of deferred loan fees, loan discounts, and loans in process.

Return on average assets and return on average equity are common methods of measuring operating results. Annualized return on average assets increased to 1.33%1.37% and 1.31% for the three and nine months ended DecemberMarch 31, 2025 as2026 compared to 1.05%1.12% and 1.04% for the three and nine months ended DecemberMarch 31, 2024.2025. Annualized return on average equity increased to 16.27%16.02% and 15.65% for the three and nine months ended DecemberMarch 31, 20252026 as compared to 13.84%14.41% and 13.40% for the three monthsand ended December 31, 2024. Annualized return on average assets increased to 1.27% for the sixnine months ended DecemberMarch 31, 2025 as compared to 0.99% for the six months ended December 31, 2024. Annualized return on average equity increased to 15.45% for the six months ended December 31, 2025 as compared to 12.89% for the six months ended December 31, 2024.2025. The increase in return on average assets and average equity for the three and sixnine months ended DecemberMarch 31, 20252026 was primarily the result of net income outpacing growth in the balance sheet.

Net income amounted to $10.3$10.5 million for the three months ended DecemberMarch 31, 20252026 as compared to $7.5$8.1 million for the three months ended DecemberMarch 31, 2024,2025, an increase of $2.8$2.4 million. Net income amounted to $19.2$29.7 million for the sixnine months ended DecemberMarch 31, 20252026 as compared to $13.8$21.8 million for the sixnine months ended DecemberMarch 31, 2024,2025, an increase of $5.4$7.9 million.

Average assets increased $251.2$177.6 million, or 8.8%,6.1%, to $3.1 billion for the three months ended DecemberMarch 31, 20252026 as compared to $2.9 billion for the three months ended DecemberMarch 31, 2024.2025. Average equity increased $36.7$39.2 million, or 17.0%,17.5%, to $253.1$262.8 million for the three months ended DecemberMarch 31, 20252026 as compared to $216.4$223.6 million for the three months ended DecemberMarch 31, 2024.2025. Average assets increased $248.4$225.1 million, or 9.0%,8.0%, to $3.0 billion for the sixnine months ended DecemberMarch 31, 20252026 as compared to $2.8 billion for the sixnine months ended DecemberMarch 31, 2024.2025. Average equity increased $34.7$36.0 million, or 16.3%,16.6%, to $248.1$253.0 million for the sixnine months ended DecemberMarch 31, 20252026 as compared to $213.4$217.0 million for the sixnine months ended DecemberMarch 31, 2024.2025.

Interest income amounted to $33.5$32.6 million for the three months ended DecemberMarch 31, 20252026 as compared to $29.4$29.8 million for the three months ended DecemberMarch 31, 2024,2025, an increase of $4.1$2.8 million, or 13.9%.9.4%. Interest income amounted to $65.1$97.7 million for the sixnine months ended DecemberMarch 31, 20252026 as compared to $57.2$87.0 million for the sixnine months ended DecemberMarch 31, 2024,2025, an increase of $7.9$10.7 million, or 13.9%.12.3%. The increase during the three and nine months ended March 31, 2026, was primarily due to the increase in the average balances on loans and securities had the greatest impact on interest income when comparing the 2025 and 2024 periods.securities. The increase in yields of loans and securities also increased during the comparative periods contributing to higher interest income.

Average loan balances increased $162.6$129.9 million and $160.2$150.2 million and the yield on loans increased 216 and 1914 basis points when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. The average balance of securities increased $107.4$58.9 million and $97.6$84.9 million and the yield on such securities increased 27 and 26 basis points whenfor comparingboth the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. AverageThe average interest-bearing bank balances and federal funds decreased $29.9$24.7 million and $18.4$20.5 million and the yield on interest-bearing bank balances and federal funds decreased 5677 and 72 basis points when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively.

Interest expense amounted to $14.4$12.4 million for the three months ended DecemberMarch 31, 20252026 as compared to $15.4$13.6 million for the three months ended DecemberMarch 31, 2024,2025, a decrease of $912,000,$1.2 million, or 5.9%.8.7%. Interest expense amounted to $28.5$40.9 million for the sixnine months ended DecemberMarch 31, 20252026 as compared to $30.0$43.6 million for the sixnine months ended DecemberMarch 31, 2024,2025, a decrease of $1.4$2.7 million, or 4.8%.6.0%. The decrease during the three and sixnine months ended DecemberMarch 31, 2025,2026 was primarily due to the decrease in the average cost of funds, partially offset by the increase in the average balance of interest-bearing liabilities. The decrease in the cost of NOW deposits had the greatest impact on interest expense when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024.2025.

The cost of NOW deposits decreased 4135 and 39 basis points for the three and six months ended December 31, 2025 and 2024, respectively,points, and the cost of certificates of depositdeposits decreased 6350 and 7464 basis points when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. The growth in interest-bearing liabilities was primarily due to an increase in average NOW deposits of $202.3$129.6 million and $196.0$174.2 million and an increase in average certificates of deposits of $39.3$34.4 million and $50.5$45.2 million when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. This was partially offset by a decrease in average savings and money market deposits of $16.4$9.8 million and $16.1 million, and a decrease in borrowings of $5.2 million and $8.8$14.0 million when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024.2025, Yieldsrespectively. on interest-bearing deposits decreased whenWhen comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, asyields on interest-earning assets increased while the Companycosts of interest-bearing deposits declined, reflecting continued aasset repricing and the Company’s strategic reduction in deposit rates that aligns with the Federal Reserve’s rate cuts.rates.

Net interest income increased $5.0$4.0 million to $19.1 $20.2 million for the three months ended DecemberMarch 31, 2025,2026, from $14.1$16.2 million for the three months ended DecemberMarch 31, 2024.2025. Net interest income increased $9.4 $13.4 million to $36.6$56.8 million for the sixnine months ended DecemberMarch 31, 2025,2026, from $27.2 $43.4 million for the sixnine months ended DecemberMarch 31, 2024.2025. The increase in net interest income for the three and six months ended December 31, 2025, was due to an increase in the average balance of interest-earning assets, which increased $241.1 $164.7 million and $240.4$215.6 million when comparing the three and sixnine months ended December March 31, 20252026 and 2024,2025, respectively, an increase in interest rates earned on interest-earning assets, which increased 2014 and 19 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively, and a decrease in interest rates earned on interest-bearing liabilities, which decreased 34 and 3217 basis points when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively, and a decrease in rates paid on interest-bearing liabilities, which decreased 29 and 31 basis points when comparing the three and nine months ended March 31, 2026 and 2025, respectively. The increase in net interest income was offset by an increase in the average balance of interest-bearing liabilities, which increased $220.1$144.1 million and $221.6$196.2 million when comparing the three and sixnine months ended DecemberMarch 31, 20252026 and 2024, 2025, respectively.

Net interest rate spread increased 5443 basis points to 2.34%2.55% for the three months ended DecemberMarch 31, 20252026 as compared to 1.80%2.12% for the three months ended DecemberMarch 31, 2024.2025. Net interest rate spread increased 5148 basis points to 2.29%2.38% for the sixnine months ended DecemberMarch 31, 20252026 as compared to 1.78%1.90% for the sixnine months ended DecemberMarch 31, 2024.2025.

Net interest margin increased 5041 basis points to 2.54%2.73% for the three months ended DecemberMarch 31, 20252026 as compared to 2.04%2.32% for the three months ended DecemberMarch 31, 2024.2025. Net interest margin increased 4745 basis points to 2.51%2.59% for the sixnine months ended DecemberMarch 31, 20252026 as compared to 2.04%2.14% for the sixnine months ended DecemberMarch 31, 2024.2025. The increase in net interest rate spread and net interest margin duringfor the three and sixnine months ended DecemberMarch 31, 2025,2026 was duedriven toby increases inhigher interest income on loans and securities, as theyearning continueassets torepriced repriceand atnew higheroriginations reflected yields andabove theprior-period interestlevels, ratescombined earnedwith on new balances were higher than the historic low levels from the prior periods, and the reduction indisciplined deposit rates.pricing that reduced funding costs.

Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.83%3.03% and 2.31%2.60% for the three months ended DecemberMarch 31, 20252026 and 2024,2025, respectively, and was 2.81%2.88% and 2.30%2.41% for the sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively.

Management continues to closely monitor asset quality and adjust the level of the allowance for credit losses. The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses amounted to $199,000$451,000 and $478,000$1.1 million for the three months ended DecemberMarch 31, 20252026 and 2024,2025, respectively, and $1.5$1.9 million and $1.1$2.2 million for the sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. The provision for the sixnine months ended DecemberMarch 31, 2025,2026, was primarily attributable to an increase in loan volume andoffset growthby improvements in securitiesthe held-to-maturityeconomic thatforecasts requireused anin allowance.the Current Expected Credit Loss model. The allowance for credit losses on loans to total loans receivable was 1.26%1.25% at DecemberMarch 31, 20252026 as compared to 1.24% at June 30, 2025.

Noninterest expense increased $1.1$1.2 million, or 11.4%,12.3%, to $10.5$11.3 million for the three months ended DecemberMarch 31, 20252026 compared to $9.4$10.0 million for the three months ended DecemberMarch 31, 2024.2025. The increase during the three months ended DecemberMarch 31, 2025,2026 was primarily due to a $706,000 non-cash settlement charge as a result of the completed termination of the Company’s defined benefit pension plan, included in other expense, an increase of $570,000$588,000 in salaries and employee benefits, an increase of $234,000 in legal and professional fees, an increase of $193,000 of defined benefit pension expense due to the Board approved termination of the Pension Plan, included in other expenses, and an increase of $154,000$166,000 in computer software, suppliesservice and supportdata processing expenses. This was partially offset by a $197,000decrease decreaseof $277,000 in the allowance for credit losses unfunded commitment expense, included in other expense, due to a decrease in the Company’s contractual obligation to extend credit, included in other expenses.credit. Noninterest expense increased $1.6$2.8 million, or 8.4%,9.7%, to $20.5$31.8 million for the sixnine months ended DecemberMarch 31, 20252026 as compared to $18.9$29.0 million for the sixnine months ended DecemberMarch 31, 2024.2025. The increase during the sixnine months ended DecemberMarch 31, 2025,2026 was primarily due to an increase of $848,000$1.4 million in salaries and employee benefitsbenefits, costs,a $905,000 non-cash settlement charge as a result of the completed termination of the Company’s defined benefit pension plan, included in other expense, an increase of $276,000$355,000 in legalcomputer software, supplies and professionalsupport fees, an increase of $252,000 in charitable contributionscontributions, included in other expense, as the Bank made a $250,000 charitable donation to the Bank of Greene County Charitable Foundation, includedan increase of $194,000 in otherservice expense,and data processing expenses, an increase of $239,000$162,000 in computer software, supplieslegal and supportprofessional fees, and an increase of $188,000$152,000 ofin definedoccupancy benefit pension expense.expenses. This was partially offset by a $744,000$1.0 million decrease in the allowance for credit losses unfunded commitment expense, included in other expense.

Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given period and certain regulatory requirements. The effective tax rate was 10.9%13.5% and 11.9%12.4% for the three and sixnine months ended DecemberMarch 31, 2025,2026, and 7.3%9.9% and 6.9%8.0% for the three and sixnine months ended DecemberMarch 31, 2024,2025, respectively. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, income received on the bank owned life insurance and tax credits, to arrive at the effective tax rate. The increase during the three and sixnine months ended DecemberMarch 31, 2025,2026, is primarily due to higher pre-tax income and reflects a lower mix of tax-exempt income from municipal bonds, tax advantage loans, and bank owned life insurance in proportion to pre-tax income.

Market risk is the risk of loss in a financial instrument arising from adverse changes in market rates and/or prices such as interest rates, foreign currency exchange rates, commodity prices, and equity prices. The Company’s most significant form of market risk is interest rate risk since the majority of the Company’s assets and liabilities are sensitive to changes in interest rates. The Company’s primary sources of funds are deposits and proceeds from principal and interest payments on loans, mortgage-backed securities and debt securities, with lines of credit available through the Federal Home Loan Bank, Atlantic Community Bankers Bank and three other financial institutions, as needed. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit outflows, mortgage prepayments, and lending activities are greatly influenced by general interest rates, economic conditions and competition. At DecemberMarch 31, 2025,2026, the Company had $124.1$139.5 million in cash and cash equivalents, representing 3.9%4.4% of total assets, and had $379.0$398.5 million available in unused lines of credit.